Introducing the Biznews Global Share portfolio
By Alec Hogg
For years I resisted the temptation to invest funds abroad. Capital is the oil that greases the wheel of every economy. The more of it you have, the greater the wealth which can be created. South Africa is very much a developing country so relies heavily on foreign inflows of capital to fund economic growth. It went against my personal grain to channel funds abroad – no matter how much financial sense that made.
But like the great economist John Maynard Keynes urged us, when circumstances change so should one's mind. For me, on many fronts the current South African Government has lost its economic way. It is blinkered to damage wrought by inflexible labour policies and the communist-inspired Developmental State. This Government will only come to its senses when forced to face consequences of its actions – poor economic growth, rising unemployment and a weaker exchange rate.
It would be irrational to align my personal finances with a ship whose course I strongly disagree with. So after decades of resistance, I've now joined the "invest offshore" camp. So am delighted to introduce the Biznews Global Share portfolio
. In the weeks and months ahead, I'll be offering my ideas about what you should consider putting into your own portfolio of global equities – one of the best vehicles to immunise savings against the SA Government's idealistic but misguided economic policies.
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